I’m starting a business: at what point do I need to think about insurance?

The slightly longer answer: There are several different types of insurance that you might want to consider as a contractor or a freelancer. They serve slightly different purposes, but their primary aim is to protect you against huge financial claims that might arise as a result of your actions or accidents.

Here’s our quick, jargon-busting guide to the main types of insurance that we think start-up businesses should think about, why they are important and when we think you should take out cover.

What’s the insurance type?

Professional Indemnity Insurance

Why do I need it?

This type of insurance protects you and your business if you make mistakes in the course of your work. If a client loses out as a result of advice or service that you provided, they may try and claim against you. This insurance will cover your legal defence costs and any damages awarded to the claimant.

When do I need it?

Before you do any work for any clients – that way, everything you produce, sell, or any service you deliver will be covered.

What’s the insurance type?

Public Liability Insurance

Why do I need it?

This type of insurance protects you from damage to people or their property that occurs during your work. A simple accident, like someone tripping over a bag that you’ve left in a client’s office, could lead to a massive claim against you. Public liability insurance is essential to protect you and cover your costs and damages if you encounter this type of claim.

When do I need it?

If you will be having clients enter your premises (or home), or you will be going to work on their premises, get this before any such visits take place. It might seem unlikely, but it only takes a fall or a trip to potentially subject you to a huge claim that leaves you personally liable for thousands of pounds that you probably don’t have.

What’s the insurance type?

Occupational Personal Accident cover

Why do I need it?

This is one of the policies that our clients value the most. This policy will pay out if you are injured as a result of an occupational accident, to protect your earnings. The Kingsbridge policy pays out a weekly benefit for up to 52 weeks, and a lump sum in the event of permanent disablement or death.

When do I need it?

Before you have an accident at work, and, since no one can predict when or if that might happen, we’d say, have this cover in place before you start.

What’s the insurance type?

Directors’ and Officers’ Liability Insurance

And why do I need it?

This cover pays your legal defence costs and protects your assets in the event of a number of legal challenges including accusations of financial mismanagement, of a legislative breach, of a health and safety failure, or of breaching company law.

When do I need it?

These may seem like problems from a far-distant future, but a legal challenge can come unforeseen at any point in running a business. It’s better to have this protection in place from Day 1.

The good news for those just starting is that Kingsbridge offers one simple package that includes all these different types of insurance, specially tailored to the needs of contractors and freelancers. In just one quick phone call or online quote, you can get covered for all these needs, leaving you free to get on with the important and exciting milestone of getting your new business off the ground. Call 01242 808740 or visit us at www.kingsbridge.co.uk.